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Industrial relations refers to the interaction between the workforce and management in an industrial environment. As a business leader, you want to build a positive culture where the workforce is in step with the grander vision of the company. The approaches to organizational development toward industrial relations address what are often competing for interests from various groups that include workers, stakeholders, politicians and regulatory agencies.

Pluralistic Approach

The pluralistic approach suggests that there is more than one source of power in the relationship between workers and business leaders. Unions are often a central component to the pluralistic approach that seeks a balance of power between leadership and employees. This approach assumes conflict is inevitable, yet is a key component for innovation and company growth. Mediation seeks to find a balance between what the workforce wants and what management suggests it needs.

Learning to understand the workers' perspective helps reduce long-term conflict. This is why management that rises up from the ranks is often embraced by unions and workers. These leaders have experienced working conditions first-hand.

Unitary Approach

This approach to organizational development suggests that all stakeholders, including workers, are in agreement with the direction of the project. There is a shared vision and purpose. Any divergence from these goals or from the shared objectives is a result of poor management that's unable to inspire and clearly articulate what needs to happen. A strike is considered destructive in this type of approach, because it eats at the overall profitability of the company, which harms everyone. If you are able to get the buy-in from the workforce as a leader, you are less likely to have subgroups work against the overall goals of the company.

Human Relations Approach

The human relations approach takes organizational development from a psychological perspective. Its focus is in the positive nature, which is believed to exist in all employees and managers. Leadership maintains an open-door policy, thus the need for unions or work subgroups lobbying for changes becomes unnecessary. This approach assumes that managers listen to the needs and concerns of the workforce, and is reasonable and in alignment with the company's larger goals.

As a business leader, you may find this approach to be very idealistic when dealing with large groups of workers. If you have a few upset but charismatic workers lobbying for change, relations can quickly sour, as the few gather support and the masses' demands grow.

Marxist Approach

The Marxist approach believes that conflict among workers and leaders is the result of the capitalistic nature of society and industry. Conflict arises as workers feel more like parts of the assembly, pieces to a puzzle rather than people. The workforce can view leaders as only being concerned with profits. Unions have done much to offset the poor working conditions that prevailed when regulations didn't exist to keep workers safe with fair wages.

As a business leader, remaining on the forefront of new rules and regulations helps you provide employees with better standards sooner and reduce potential labor conflicts. Speak with union leaders regularly, and engage in conversation with the rank-and-file workers to better understand concerns before they become problems.

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About the Author

With more than 15 years of professional writing experience, Kimberlee finds it fun to take technical mumbo-jumbo and make it fun! Her first career was in financial services and insurance.

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Leonard, Kimberlee. "What Are the Different Approaches of Organizational Development Towards Industrial Relations?" Small Business - Chron.com, http://smallbusiness.chron.com/different-approaches-organizational-development-towards-industrial-relations-81594.html. 25 June 2018.

Leonard, Kimberlee. (2018, June 25). What Are the Different Approaches of Organizational Development Towards Industrial Relations? Small Business - Chron.com. Retrieved from http://smallbusiness.chron.com/different-approaches-organizational-development-towards-industrial-relations-81594.html

Leonard, Kimberlee. "What Are the Different Approaches of Organizational Development Towards Industrial Relations?" last modified June 25, 2018. http://smallbusiness.chron.com/different-approaches-organizational-development-towards-industrial-relations-81594.html

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